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Real Business Cycle Analysis Differs from Both the New Classical

Question 41

Multiple Choice

Real business cycle analysis differs from both the new classical and the new Keynesian analyses in holding that


A) the aggregate supply curve is vertical even in the short run.
B) changes in aggregate demand can affect output in the long run.
C) money is neutral in the long run, but not in the short run.
D) prices are sticky in the short run.

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